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"The latest figures show that the over 50s have continued a sensible and measured approach to accessing their savings through the pension freedoms. They recognise that small levels of savings will make little impact on their retirement income needs, yet have resisted the temptation to cash in larger pots. In their eyes, pension freedom does not mean a free-for all.

“The lack of shopping around for annuities, where 64% of people who bought an annuity stayed with their existing provider, is concerning. The majority of annuities sold in the past quarter were single-life, level deals, which means that thousands of people may be potentially missing out on a higher income by ignoring enhanced annuities. The FCA should be studying the reasons behind this closely, and take action to improve the situation.

“In Saga Investment Service’s response to the Financial Advice Market Review, we called for stronger links between Pension Wise and the professional advice industry. With take up of Pension Wise staying low, it’s clear that more needs to be done to boost the profile of the public guidance service before this could be effective. We expect the government and FCA to tackle this when it reports back on its findings from the Review."

ENDS

About Saga Investment Services

Saga Investment Services has been developed to open up the world of investing and financial planning to the UK’s over 50s in the run up to and throughout retirement, and to make the process as simple and stress-free as possible. Customers can invest from just £100, and have access to investment advice and financial planning services. Saga Investment Services champions a straight forward and transparent approach to investing, and is a proud member of the Plain English Campaign. It is a joint venture between Saga, the leading provider of services to the nation’s over 50s, and Tilney Bestinvest, the expert investment and financial planning group.